december 2007 - c.w. pub · giuliana 104,770 66,420 dc ..... mccain 357,804 391,542 florida ......
TRANSCRIPT
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Is Inflation Back?The Declining DollarA Taxing WeekendPolitics and MoneyCareer Corner
Volume 24 No. 4© 2007 C.W. Publications
December 2007
The last major inflationary spiral in the United States was from 1973-1982 when yearly inflation rates ranged from 6%-12%. Since then, wehave become used to yearly inflation rates of 2%-4% and most of youhaven’t given inflation a thought (except when you pull in the gasstation). But inflation is around in more places than just the gas station.
The chart below lists the prices of several items in 1981 and 2007as well as the change in the consumer price index. Compute thepercentage change in each of these items from 1981 to 2007 tosee how they compare with the change in the CPI. The CPI isdone for you as an example.
Consumer Price Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87.20 208.94 ________
Oil (per barrel) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38.85 $93.53 ________
Gasoline (per gallon) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.30 $3.22 ________
Median sale price of an existing home . . . . . . . . . . . . . . . . . $64,600.00 $211,700.00 ________
Bread (white, per pound) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .53 $1.21 ________
Eggs (grade A, dozen) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .94 $1.83 ________
Bananas (per pound) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .34 $ .51 ________
Coffee (per pound) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.78 $3.50 ________
Iceberg lettuce (per pound) . . . . . . . . . . . . . . . . . . . . . . . . . . $ .44 $ .93 ________
Average hourly earnings of non-supervisory workers . . . . . . $7.19 $17.57 ________
Admission to Cedar Point Amusement Park (OH) . . . . . . . . . $10.95 $42.95 ________
Harvard University (tuition for one year) . . . . . . . . . . . . . . . . $6,000.00 $31,456.00 ________
ITEM 1981 PRICE OCTOBER 2007 % CHANGE
An upward movement in the general price level resulting in a decline of purchasing power.What is inflation?
A monthly measure of changes in the prices of goods and service compiled by the U. S. Bureau of Labor Statistics.The percentage change in the CPI is known as the Rate of Inflation.
What is the Consumer Price Index?
139.6*
*208.94 -87.20 = 121.74 121.74 / 87.20 = 1.3961
DECEMBER 2007 PAGE 2
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Inflation has become a concern in specific areas such as health care, energy and college tuition rather than as an overall increase inprices which is modest compared to the last major inflationary spiral from 1973-1982. But recent declines in the value of the U. S. dollarhave also raised inflationary concerns (see page 3).
The following chart lists the rate of inflation each year from 1970-2007. Construct a line graph illustrating the yearly change inthe rate of inflation over that period.
14%
13%
12%
11%
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0‘70 ‘72 ‘74 ‘76 ‘78 ‘80 ‘82 ‘84 ‘86 ‘88 ‘90 ‘92 ‘94 ‘96 ‘98 ‘00 ‘02 ‘04 ‘06
1970 5.7%1971 4.4%1972 3.2%1973 6.2%1974 11.0%
1975 9.1%1976 5.8%1977 6.5%1978 7.6%1979 11.3%
YEAR RATE
1980 13.5%1981 10.3%1982 6.2%1983 3.2%1984 4.3%
1985 3.6%1986 1.9%1987 3.6%1988 4.1%1989 4.8%
YEAR RATE
1990 5.4%1991 4.2%1992 3.0%1993 3.0%1994 2.6%
1995 2.8%1996 3.0%1997 2.3%1998 1.6%1999 2.2%
YEAR RATE
2000 3.4%2001 2.8%2002 1.6%2003 2.3%2004 2.7%
2005 3.4%2006 3.2%2007 2.5%
*THRU OCTOBER
YEAR RATE
*
DECEMBER 2007 PAGE 3
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In recent months, the U. S. dollar has been loosing value dramatically against other currencies around the world. The following chart liststhe amount of six foreign currencies that could be purchased with $1.00 U.S. in November, 2000–2007.
2000 1.9433 .7016 1.5523 1.1669 9.4926 108.7836
2001 2.5372 .6991 1.5882 1.1315 9.2185 122.5276
2002 3.6856 .6335 1.5806 .9918 10.1781 120.4426
2003 2.9433 .5921 1.3030 .8513 11.1802 108.9651
2004 2.7801 .5393 1.1934 .7705 11.3556 105.3655
2005 2.1994 .5826 1.1918 .8567 10.6415 119.1878
2006 2.1513 .5290 1.1404 .7807 10.8513 118.1347
2007 1.7433 .4883 .9729 .6825 10.9306 111.0452
BRAZILIANREAL
BRITISHPOUND
CANADIANDOLLAR
EMUEURO
MEXICANPESO
JAPANESEYENNOV/YEAR
1) How do you think the declining U. S. dollar would affect each of these people?
An American tourist planning a vacation to Europe: _______________________________________________________
____________________________________________________________________________________________
A U. S. manufacturer exporting goods to Europe: ________________________________________________________
____________________________________________________________________________________________
An American consumer buying imported goods: _________________________________________________________
____________________________________________________________________________________________
2) How can a declining dollar cause inflation in the United States?
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
3) Do you think a declining dollar is good or bad for the United States? Why?
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
DECEMBER 2007 PAGE 4
Shopping Smart includes over 30 pages of reproducible classroom activities—preview it FREE at cwpub.com
Recently a family from Canada spent three days touring Chicago. A major factor in deciding to make the trip was the decling value ofthe U. S. dollar which allowed their Canadian dollars to go much further. Listed on the chart below are the amounts they spent and thetaxes they paid.
Calculate the tax rate for each item, the total retail price of their purchases, the total taxes they paid and the total amount theyspent on their purchases.
FRIDAY
Homewood Suites room . . . . . . . . . . . . . . $279.00 $40.70 ______%
Double decker bus pass . . . . . . . . . . . . . . $70.00 $6.30 ______%
McDonald’s lunch at Navy Pier . . . . . . . . . $30.00 $3.07 ______%
Fudge at Navy Pier . . . . . . . . . . . . . . . . . . . $14.00 $1.26 ______%
Doll clothes at Navy Pier . . . . . . . . . . . . . . $16.00 $1.44 ______%
Chicago T-shirts & Souvenirs at Navy Pier . $30.00 $2.69 ______%
Bears T-shirts at Navy Pier . . . . . . . . . . . . $20.00 $1.79 ______%
Pepsi at Navy Pier . . . . . . . . . . . . . . . . . . . $3.00 $ .36 ______%
Bottle of water . . . . . . . . . . . . . . . . . . . . . . . $2.00 $ .02 ______%
“Wicked” tickets . . . . . . . . . . . . . . . . . . . . . $400.00 $57.99 ______%
Dinner at Brazzaz . . . . . . . . . . . . . . . . . . . . $175.00 $17.93 ______%
SATURDAY
Hotel room . . . . . . . . . . . . . . . . . . . . . . . . . $279.00 $40.70 ______%
Snacks at Shedd Aquarium . . . . . . . . . . . . $17.00 $1.53 ______%
Blackhawk’s cap . . . . . . . . . . . . . . . . . . . . . $24.00 $2.16 ______%
Dinner at Buca di Beppo . . . . . . . . . . . . . . $85.00 $8.71 ______%
SUNDAY
Hotel room . . . . . . . . . . . . . . . . . . . . . . . . . $279.00 $40.70 ______%
Lunch at Museum of Science & Industry . . $30.00 $2.76 ______%
TOTAL $_____ $_____
Assuming they were able to buy U. S.dollars for their trip at $ .94 Can = $1 US,what would their purchases have costthem in Canadian dollars?
______________________________
What would their purchases have cost inCanadian dollars assuming the followingexchange rates were still in effect?
2006: $1 US = $1.14 Can
______________________________
2005: $1 US = $1.19 Can
______________________________
2003: $1 US = $1.30 Can
______________________________
2002: $1 US = $1.58 Can
______________________________
RETAIL PRICE TAX TAX RATE
14.6*
*$40.70 / $279.00 = .1458 = 14.6%
TOTAL AMOUNT SPENT $_____
DECEMBER 2007 PAGE 5
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Last month we looked at the Democrats fundingraising efforts for the primaries. This month we’ll look at the Republicans.
The chart below shows the top Republican fundraising recipient in each of the 50 states and the amount raised in eachstate by both Rudy Giuliani and Mitt Romney, the two leading Republican fundraisers.
Alabama ............... Giuliani $ 270,650 $ 207,365Alaska .................. Giuliani 23,250 21,140Arizona ................. McCain 402,591 1,154,578Arkansas .............. Huckabee 32,375 25,640California ............. Romney 5,227,473 6,662,220Colorado ............... Romney 417,186 688,001Connecticut .......... Giuliani 1,419,650 1,047,181Delaware .............. Giuliana 104,770 66,420DC ........................ McCain 357,804 391,542Florida .................. Giuliani 3,526,826 2,659,849Georgia ................. Romney 790,560 958,209Hawaii .................. McCain 18,467 25,280Idaho .................... Romney 161,500 457,248Illinois .................. Romney 793,225 951,497Indiana ................. Giuliani 255,22 195,220Iowa ...................... Romney 64,930 149,562Kansas ................. Brownback 104,200 84,125Kentucky .............. Romney 69,155 159,950Louisiana ............. Giuliani 416,025 128,665Maine ................... Romney 24,375 60,761Maryland ............. Giuliani 655,060 602,023Massachusetts ..... Romney 695,890 3,619,832Michigan .............. Romney 454,833 1,885,647Minnesota ............ Giuliani 333,890 77,040Mississippi ........... McCain 102,296 26,800Missouri ............... Romney 211,995 762,865
Montana ............... Romney NA 32,010Nebraska .............. Romney 26,062 80,550Nevada ................. Romney 658,790 732,797New Hampshire .. Romney 66,736 260,275New Jersey .......... Giuliani 3,351,678 447,286New Mexico ......... Giuliani 53,100 47,830New York .............. Giuliani 9,822,777 2,010,685North Carolina .... Giuliani 482,390 261,685North Dakota ....... McCain NA 4,795Ohio ...................... Romney 493,891 1,102,577Oklahoma ............ Giuliani 329,320 84,450Oregon .................. Romney 145,035 392,260Pennsylvania ....... Giuliani 1,117,466 419,003Rhode Island ........ Giuliani 117,529 92,283South Carolina .... Giuliani 402,510 317,580South Dakota ....... Romney 13,527 60,450Tennessee ............. Thompson 81,285 428,122Texas .................... Giuliani 4,788,168 2,254,349Utah ..................... Romney 181,400 4,628,681Vermont ............... Romney 27,150 44,625Virginia ................ McCain 959,996 994,353Washington .......... Romney 224,101 558,273West Virginia ....... Giuliani 112,175 31,356Wisconsin ............. Thompson 57,250 122,066Wyoming ............. Romney 41,770 169,575
StateTopFundraiser Giuliani Romney State
TopFundraiser Giuliani Romney
The early primary votes come from New Hampshire, Iowa and South Carolina, but the money comes from different states. The candidatesare stumping New Hampshire, Iowa and South Carolina for votes, but they’re stumping elswhere for the money.
1) List the top 10 fundraising states for both Giuliani and Romney.
1. ____________________
2. ____________________
3. ____________________
4. ____________________
5. ____________________
6. ____________________
7. ____________________
8. ____________________
9. ____________________
10. ____________________
1. ____________________
2. ____________________
3. ____________________
4. ____________________
5. ____________________
6. ____________________
7. ____________________
8. ____________________
9. ____________________
10. ____________________
Rudy Giuliani Mitt Romney
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DECEMBER 2007 PAGE 6
The Presidency includes over 30 pages of reproducible classroom activities—preview it FREE at cwpub.com
2) On the map:a. Blacken those states in which Rudy Giuliani is the leading fundraiser.
b. Lightly shade those state in which Mitt Romney is the leading fundraiser.
c. Leave those states white in which another Republican candidate is the leading fundraiser. Why do you think these candidates are leading in those particular states?
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3) Analyze both the chart on page 5 and the map you have created. Although the chart and map are concerned with fundraisingand not votes, what can you infer about these candidates’ geographic voter support?
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DECEMBER 2007 PAGE 7
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Now that we’re in the midst of the presidential campaign season, it’s a good time to considerpolitics as a career. Not a career as a government worker, but a career in political campaigning.
There are two types of professional campaign workers - those who plan to become part of thecandidate’s staff or administration if the election is won and those who move from one campaignto another practicing the art of winning elections.
Most campaign professionals begin as volunteers for candidates they like, learning the businessfrom the ground up stuffing envelopes, knocking on doors, making phone calls and taking polls.They become professionals when a candidate is willing to pay them for their skill and experience.
Politics is a business in which experience and winning counts and you can begin getting volunteerexperience while you’re still a student. Just pick a candidate and ask to be put to work.
Listed below are two ads for campaign professionals taken from a political candidate’s website. Below each, list the personalcharacteristics, education and skills you think would be necessary to fill these two positions.
1) __________________________________
2) __________________________________
3) __________________________________
4) __________________________________
5) __________________________________
6) __________________________________
7) __________________________________
8) __________________________________
9) __________________________________
10) __________________________________
11) __________________________________
12) __________________________________
ARIZONA (D): Campaign ManagerManage all aspects of a Congressional campaign foran Arizona Democrat. Primary responsibilities includebut are not limited to overseeing all aspects of thedevelopment and implementation of a campaign planand budget, developing and overseeing roles andnegotiate contracts with all vendors,consultants, andstaff. Salary Negotiable. Posted: 11/1/07.
ARIZONA (D): Campaign Fundraising ConsultantFundraising consulted sought to manage fundraisingcampaign for a Democratic Congressional candidate.Responsible for developing and managing fundraisingcampaign, researching and compiling donor contactdatabase, developing copy for telephone, direct mailingand email campaigns, identifying and developingfundraising events, and networking with Democraticparty officials and volunteers and organizations.Salary Negotiable. Posted: 11/1/07.
1) __________________________________
2) __________________________________
3) __________________________________
4) __________________________________
5) __________________________________
6) __________________________________
7) __________________________________
8) __________________________________
9) __________________________________
10) __________________________________
11) __________________________________
12) __________________________________
DECEMBER 2007 PAGE 8 | ANSWER KEY
PAGE 4 ANSWERS
FRIDAYHotel . . . . . 14.6%Bus pass . . 9.0Lunch . . . . 10.2Fudge . . . . 9.0Doll clothes . 9.0T-shirts . . . 9.0T-shirts . . . 9.0Pepsi . . . . . 12.0Water . . . . 1.0Tickets . . . 14.5Dinner . . . 10.2
TOTAL RETAIL PRICE: $1,753.00TOTAL TAXES: $230.11TOTAL AMOUNT SPENT: $1,983.11
2007: $1,870.862006: $2,260.752005: $2,359.902003: $2,578.042002: $3,133.31
PAGE 6 ANSWERS
In general, the lesser candidates are leading in theirhome states and perhaps a neighboring state.
PAGE 1 ANSWERS
CPI . . . . . . .139.6%Oil . . . . . . . . 140.7Gasoline . . . 147.7Home . . . . . 227.7Bread . . . . . 128.3Eggs . . . . . . 94.7
Bananas . . . 50.0Coffee . . . . . 25.9Lettuce . . . . 111.4Earnings . . . 144.4Admission . . 292.2Tuition . . . . 424.3
SATURDAYHotel . . . . . 14.6%Snacks . . 9.0Cap . . . . 9.0Dinner . . . 10.2
SUNDAYHotel . . . . . 14.6%Lunch . . . . 9.2
PAGE 5 ANSWERS
Giuliani1. NY2. CA3. TX4. FL5. NJ
Romney1. CA2. UT3. MA4. FL5. TX
6. CN7. PA8. VA9. IL
10. GA
6. NY7. MI8. AZ9. OH
10. CT
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» Creative writing assignments
» A trivia game with five categories of questions
» Video presentations and interactive games
» A careers exploration in the subject field
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